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pickupchik [31]
3 years ago
5

If the simple annual interest rate on a loan is 6, what is the interest rate in percentage per month?

Mathematics
1 answer:
zzz [600]3 years ago
4 0

Answer:

0.5 %  

Step-by-step explanation:

 Annual rate = 6 %/yr

Monthly rate = ¹/₁₂ × 6 = 0.5 %/mo

If you invested $100 at 6 % annual simple interest, you would have <em>$106 </em>at the end of the year.

Simple interest is calculated only on the principal.

If the interest were calculated at 0.5 % monthly simple interest, you would get $0.50 at the end of each month. At the end of 12 mo, you would have <em>$106. </em>

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